Tag: ownership structures - joint stock company

Quizzes (9) Questions (144)

Questions Related to ownership structures - joint stock company

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Which of the following statements suits best to private limited company?

  1. It is owned by the government

  2. It is owned by shareholders who can sell their shares in the stock exchange

  3. It is formed for the benefit of society at large

  4. Its accounts can be kept private and it receives little coverage in the business
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Private limited companies is a type of company which has limited liability and offers legal protection to its share holders. The accounts of this company are kept private between the members themselves and also it receives little coverage in the business.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

A Company which is employing _______ number of employees are required to have a PPF account.

  1. 30

  2. 25

  3. 20

  4. 35
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Employees' Provident Funds and Miscellaneous Provisions Act, establishments employing 20 or more persons are generally required to provide PF benefits.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Which of the following statement is true?

  1. Both private and public companies need one director

  2. Private companies need two directors but public companies need 3

  3. Private companies need one director but public companies need two

  4. Both private and public companies need two directors
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Minimum number of three directors is required in case of public company while two are required in case of public company and one director in case of One person company.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

What is the disadvantage of a public corporation?

  1. No legal entity

  2. Excessive accountability

  3. Lack of availability of managerial talent

  4. No financial autonomy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Public corporations are often criticized for excessive accountability to the government and legislature, which can hinder their operational flexibility.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Limited Liability Partnership form of business organization has been introduced in India by ________.

  1. Indian Companies Act, $1956$

  2. Limited Liability Partnership Act, $2008$

  3. Indian Contract Act

  4. Limited Liability Partnership Act, $2006$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Limited Liability Partnership Act, 2008, was the legislation enacted in India to govern LLPs. The other options refer to incorrect acts or years.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Which amongst these is NOT A disadvantage of incorporating a company _____________.

  1. separate identify

  2. formation do expensive

  3. detailed winding up procedures

  4. co operate disclosures
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Separate legal identity is actually an ADVANTAGE of incorporation, not a disadvantage. A company's separate existence allows it to own property, sue and be sued in its own name, and continue regardless of member changes. The other options - expensive formation, detailed winding up procedures, and corporate disclosures - are genuine disadvantages. Note the question has garbled text.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

For constituting a company meeting what will be true, ____________________.

  1. One person can never constitute a meeting.

  2. One person may constitute a meeting in exceptional circumstances

  3. Neither a nor b

  4. Both a and b.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Generally, a meeting requires multiple people, but the Companies Act allows for a single person to constitute a meeting in specific circumstances, such as a meeting of a One Person Company or when ordered by a court.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

A company, when registered with limited liability under the Companies act. 1956 shall be deemed to be a company ________.

  1. limited by shares

  2. limited by money

  3. limited by directors

  4. all of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under the Companies Act, a company can be limited by shares or by guarantee. Limited by shares is the most common form where liability is restricted to the unpaid amount on the shares held.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

The position of a company secretary is like that of a hub in a bicycle wheel this statements shows the ___________________.

  1. Importance of company secretary

  2. Rights of company secretary

  3. Duties of company secretary

  4. Liabilities of company secretary
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Comparing a company secretary to a hub in a bicycle wheel emphasizes their central role in coordinating administrative and legal functions, which highlights their importance to the organization.